Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Oilsands Quest Inc | from8-k.htm |
| EX-10.1 - EXHIBIT 10.1 - TRANSITION AGREEMENT - Oilsands Quest Inc | exhibit10-1.htm |
EXHIBIT
99.1
CUSIP#
678046 10 3
NYSE
AmexL BQI
NEWS
RELEASE
DATE: January
19, 2010
Oilsands
Quest announces sale of Pasquia Hills oil shale assets, resignation of CEO and
senior management changes
Calgary,
Alberta -- (January 19, 2010) – Oilsands Quest Inc. (NYSE AMEX:BQI) (“OQI”) has
reached an agreement to sell its oil shale assets located near Pasquia Hills in
Saskatchewan to Canshale Corp. (“Canshale”). As previously announced, OQI has
been examining alternative structures to develop its oil shale assets and
provide a separate vehicle for funding and operating these assets, having
determined that the best use of OQI’s financial and management resources
continues to be in developing its significant portfolio of oil sands projects
and exploration lands.
OQI will
sell the oil shale properties to Canshale for consideration of CDN $1 million in
cash and 8,000,000 shares of Canshale. The transaction is conditional on
Canshale raising a minimum of CDN $12.5 million. Following the initial Canshale
financing, OQI will retain an ownership interest of between 10 and 16 per cent
in Canshale.
Canshale
is a private company formed by Christopher H. Hopkins. Mr. Hopkins is the
Chairman, President and Chief Executive Officer at Canshale and, effective
January 15, 2010, resigned as President and Chief Executive Officer at
OQI. Mr. Hopkins remains on the board of directors of OQI and is the
chair of the Environment, Health and Safety Committee. He is also a
member of the Governance Committee of the board.
Mr.
Hopkins has founded and built a number of early stage exploration companies,
including OQI, and will bring this leadership to Canshale and the development of
its oil shale assets.
T. Murray
Wilson, Executive Chairman of OQI, will assume the additional roles of President
and Chief Executive Officer. OQI has retained a leading international search
firm to recruit senior technical and operational executives. OQI has also
retained the consulting services of
Dr.
Arthur Hale, an unconventional reservoir expert. Dr. Hale has been with the
Royal Dutch Shell Group of companies since 1986 and is currently Senior Adviser
to the engineering and research groups. At OQI, Dr. Hale will be
assisting in the advancement of our reservoir test program and the preparation
of the pilot project application.
W. Scott
Thompson and Thomas Milne resigned from the board of directors of OQI on January
15, 2010 and will join the board of directors of Canshale. The board of
directors of OQI appreciates the efforts and leadership they have provided in
realizing the exceptional progress of OQI since 2006.
Dr. Erdal
Yildirim, who has spent the past 18 months leading the exploration and
extraction activity at Pasquia hills, will be retiring from OQI on February 1,
2010.
“At this
important stage in our history, these changes allow us to focus our resources on
the continuing development of our extensive oil sands properties while providing
shareholders with an ongoing interest in the potential upside resulting from
Chris’ expertise related to building early stage companies such as Canshale,”
said T. Murray Wilson, Executive Chairman of OQI. "
"I am
very proud of what we have built at Oilsands Quest in the past 6 years and look
forward to continuing to play an active role on the board of directors,” said
Christopher H. Hopkins. I'm also very excited about the opportunity to advance
the Saskatchewan oil shale industry. Pasquia Hills shows great potential and I'm
confident that we can develop this resource."
Genuity
Capital Markets Ltd. is acting as financial advisor to Canshale and TD
Securities Inc. is acting as financial advisor to OQI on the
transaction.
About
Oilsands Quest
Oilsands
Quest Inc. (www.oilsandsquest.com) is exploring one of Canada's largest holdings
of contiguous oil sands permits and licenses, located in Saskatchewan and
Alberta, and is developing Saskatchewan's first global-scale oil sands
discovery. It is leading the establishment of the province of Saskatchewan's
emerging oil sands industry.
Cautionary
Statement about Forward-Looking Statements
This news
release includes certain statements that may be deemed to be “forward-looking
statements” within the meaning of the U.S. federal securities
laws. All statements, other than statements of historical
facts, included in this news release that address activities, events or
developments that our management expects, believes or anticipates will or may
occur in the future are forward-looking statements. The Company
undertakes no obligation to update forward-looking statements if circumstances
or management’s estimates or opinions should change, except as required by
law. The reader is cautioned not to place undue reliance on
forward-looking statements.
For
more information:
T. Murray
Wilson or Christopher H. Hopkins
(403)
263-1623
Email:
ir@oilsandsquest.com
Investor
Line: 1-877-718-8941